Electric ride-hailing firm BluSmart on Wednesday halted cab bookings in certain parts of Delhi-NCR, Bengaluru, and Mumbai, the three cities where it operates.
Even as the BluSmart app is available to download on the Google Play Store, users are unable to select time slots in order to complete the ride-booking process.
Gold Rate
24 April 2025
Sources also confirmed that the Uber-BluSmart deal is being re-evaluated. BluSmart is a subsidiary firm of Gensol Engineering.
The development comes a day after the Securities and Exchange Board of India barred the promoters and directors of Gensol Engineering — Anmol Singh Jaggi and Puneet Singh Jaggi — from accessing the securities markets allegedly for fraudulent practices and funds diversion.
The market regulator also restricted the duo from holding any key positions at any listed firm.
In an interim order on Tuesday, Sebi whole-time member Ashwani Bhatia said, ‘The promoters were running a listed public company as if it were a proprietary firm. The companys funds were routed to related parties and used for unconnected expenses, as if the companys funds were promoters piggy bank.’
According to Sebi, the promoters diverted large sums of money for personal luxuries, including purchase of an apartment at The Camellias in DLF Gurgaon, a high-end golf set, and for making personal credit card payments.
Gensol Engineering had taken term loans from two government-backed lenders — the Indian Renewable Energy Development Agency (Ireda), and the Power Finance Corporation (PFC).
Out of the total loan amount, the company had earmarked Rs 663.89 crore for the procurement of 6,400 electric vehicles to be deployed at BluSmart.
However, there was a mismatch in the usage of the amount. In a reply to Sebi in February, Gensol Engineering admitted that it had only purchased 4,704 EVs, falling short of its initial target.
Owing to financial crisis, BluSmart was earlier looking to go for a hybrid model of operations wherein its services would be available on its own app as well as on the app of cab-hailing platform Uber.
